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hot 호혼 chili limited Quarterly Report Period Ending December 31st 2020 Highlights Costa Fuego Being Built Towards a Tier - 1 Copper Development Hot Chili's combined Costa Fuego project commences next stage of resource growth to expand the current Mineral Resource estimate of 724Mt at 0.48 % copper equivalent ( CuEq * ) for 2.9Mt copper , 2.7Moz gold , 9.9Moz Silver and 64kt molybdenum New Results Confirming Expansion of Bulk Tonnage and High Grade at Cortadera • Several outstanding new extensional drill results recorded from the largest and second largest porphyries at Cortadera copper - gold discovery , the centre piece of Costa Fuego Water Rights Secured for Costa Fuego Copper - Gold Super Hub • Crucial water extraction rights granted for the Costa Fuego coastal copper development , securing a critical infrastructure requirement and sufficient water supply to support a large - scale conventional copper - gold operation Lease Mining & Processing Agreement with ENAMI Expanded by 50 % • Hot Chili has expanded its agreement with Chilean government agency ENAMI for the mining and processing of ore from the Productora copper - gold project , up to a maximum production of 180,000 tonnes per annum Hot Chili Completes $ 25.6M Institutional - led Placement • Placement funds secure next acquisition payment of US $ 10M for Cortadera , ensuring 100 % control is maintained , and also provide full funding for 2021 work programme Major Work Programmes Underway Fully funded , 40,000m drill programme at Cortadera commenced on 11th January , with two drill rigs in operation and a third drill set to arrive in February Combined high grade satellite resource estimate ( Productora and San Antonio ) being compiled and scoping study for combined Costa Fuego development advancing well * Copper Equivalent ( CuEq ) reported for the resource were calculated using the following formula : CuEq % = ( ( Cu % × Cu price 1 % per tonne x Cu_recovery ) + ( Mo ppm × Mo price per g / t x Mo_recovery ) + ( Au ppm x Au price per g / t x Au_recovery ) + ( Ag ppm x Ag price per g / t x Ag_recovery ) ) / ( Cu price 1 % per tonne ) . The Metal Prices applied in the calculation were : Cu = 3.00 USD / lb , Au = 1,550 USD / oz , Mo = 12 USD / lb , and Ag = 18 USD / oz . For Cortadera ( Inferred + Indicated ) , the average Metallurgical Recoveries were : Cu = 83 % , Au = 56 % , Mo = 82 % , and Ag = 37 % . For Productora ( Inferred + Indicated ) , the average Metallurgical Recoveries were : Cu = 83 % , Au = 43 % and Mo = 42 % . For Costa Fuego ( Inferred + Indicated ) , the average Metallurgical Recoveries were : Cu = 83 % , Au = 51 % , Mo = 67 % and Ag = 23 % . ** Reported on a 100 % Basis - combining Cortadera and Productora Mineral Resources using a + 0.25 % CuEq reporting cut - off grade Hot Chili Limited ACN 130 955 725 First Floor , 768 Canning Highway , Applecross , Western Australia 6153 ☑ PO Box 1725 , Applecross , Western Australia 6953 ASX : HCH P : +61 8 9315 9009 F : +61 8 9315 5004 www.hotchili.net.au Contact Mr Christian Easterday Managing Director E : admin@hotchili.net.au 1